Unformatted text preview: process behind the payback method is that the quicker the cost of an investment can be recovered, the more desirable the investment. The payback period is expressed in years. The payback method is not a true measure of the profitability of an investment. Rather, it simply tells the manager how many years will be required to recover the original investment. Unfortunately, a shorter payback period does not always mean that one investment is more desirable than another. You would have to look at the return on investment from one investment to another and the risk involved References Zuashkiani, A., & Jardine, A. S. (2010). Coming full circle. Industrial Engineer: IE , 42(4), 44-49. Retrieved from EBSCO host ....
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This note was uploaded on 07/16/2011 for the course ACCOUNTING 203 taught by Professor Jones during the Spring '11 term at Kaplan University.
- Spring '11